Renewable energy industry hopeful of policy change under Turnbull Government

The renewable energy industry is celebrating the ascension of Malcolm Turnbull as Prime Minister on hopes that he may lead the Coalition towards policies more supportive of the sector.

Having lost 88 per cent of investment over the past year amid uncertainty about the scale of a cut in the renewable energy target, and receiving just 0.1 per cent of global renewable investment, industry players are hopeful the winds of change are coming.

However, Mr Turnbull's early statements have been in favour of retaining the Government's current climate change policies.

"The climate policy is one that I think has been very well designed that was a very, very good piece of work," he said on Monday.

This stance is perhaps unsurprising given that Malcolm Turnbull's push for an emissions trading scheme cost him the opposition leadership in 2009.

This time around, the newly installed prime minister is being cautious, endorsing the party's commitment to 'direct action' despite publicly opposing it in the past.

Immediately after rolling Mr Abbott, Malcolm Turnbull has confirmed his backing for the Government's targets to cut emissions by 26-28 per cent by 2030.

"The cuts we are proposing are absolutely comparable and appropriate, and in line with other economies. they are very substantial cuts," the new PM said in Question Time yesterday.

Former Liberal leader John Hewson said Mr Turnbull appears to have compromised his personal position on climate change to secure the top job.

"I'm also told that Malcolm, in order to stitch up votes for the leadership, did a deal to keep the same emissions reduction targets as Tony Abbott had announced at 26 per cent by 2030 and also to not re-endorse an emissions trading scheme," he told ABC TV's The Business program.

'Mood lifts substantially' on Turnbull takeover

So far, the new Prime Minister has not endorsed any change in the renewable energy target.

Despite that, the industry is celebrating.

"The mood has lifted quite substantially and that's because we now have a Prime Minister who quite clearly is a bigger supporter of renewable energy and sees it playing a bigger role in the future of the Australian economy," said Kane Thornton, chief executive of the Clean Energy Council.

The former prime minister, Tony Abbott, declared coal king and called wind farms "ugly".

"Coal is good for humanity. Coal is good for prosperity. Coal is an essential part of our economic future - here in Australia and right around the world," Mr Abbott declared.

Treasurer Joe Hockey, widely tipped to be replaced in Mr Turnbull's new Cabinet, also expressed his distaste for wind turbines.

"I find those wind farms around Lake George utterly offensive," he declared.

That windfarm is owned by Infigen Energy.

"It's a happy mood, very much so," said Miles George, Infigen Energy's chief executive.

"The renewable energy industry is in great uncertainty ... unfavourable comments from the former prime minister kept that uncertainty bubbling along, what we need is policy certainty and Turnbull understands the need for that."

Miles George said the industry was virtually wiped out under Tony Abbott.

"For our industry it was under the Abbott government a period of great uncertainty - investment dropped by 88 per cent across 2014, many thousands of jobs were lost," he added.

Plans were also underway to abolish the Australian Renewable Energy Agency and the Clean Energy Finance Corporation.

That is one area where Kane Thornton argues that Mr Turnbull can change direction and make a real difference for renewable energy firms.

"I think one of the first things the new Prime Minister can do is send a signal to investors that Australia is an attractive place for investment by changing the Government's position in abolishing those institutions," he argued.

Dr Hewson would like to see Bernie Fraser return to his role as chair of the Climate Change Authority.

Mr Fraser resigned last week, after criticising what he said is the Government's low emissions targets.

"I thought he was doing a great job," Dr Hewson said.

"I'd like Malcolm to try and get him to come back."

However, the industry concedes that any change will be evolutionary rather than revolutionary.

"Over time, the direct action policy, or similar policy, developed further so it undertakes some of the actions you would expect an emission trading scheme to take," said Mr George.

"For example, by providing some sort of cap on emissions, some sort of mechanisms paid for by polluters, not by us out of the federal budget."

The Coalition's second prime minister in two years has declared disruption driven by technology is Australia's friend, and the renewables industry will be looking to see if it has a new friend in Canberra.